The company has two major rare earths projects, Yangibana and Brockman, in Western Australia, with Yangibana currently in the definitive feasibility study stage.
The Yangibana deposit predominantly contains neodymium, praseodymium, dysprosium and europium. These rare earths are used in the growing of permanent magnets and phosphors industries.
Hastings will use the funds for infrastructure works at Yangibana prior to processing plant construction.
This will include construction of the Yangibana mine site access road, acquisition and commissioning of an accommodation camp and the preliminary engineering design work on the production plant.
Rare earths are critical in the manufacture of a wide variety of consumer and industrial technologies ranging from flat-screen televisions to hybrid cars, wind turbines and military hardware.
Set to receive new funds by 31 August 2017
Hastings estimates an annual production quantity of 15,000 tonnes of mixed rare earth carbonate, which it will sell to offtake partners, with production projected to commence in Q3 2019.
The company closed the June quarter with a cash balance of circa $4 million.
It is expected that the receipt of the new funds and the issue of shares will be completed by 31 August 2017.
Hastings’ share price has more than doubled in the past one month and is currently trading at $0.20 intra-day.